In 2009 Indonesia formulated a Fiscal Stimulus Package worth IDR 73.3 trillion (1.4 per cent of GDP) to respond to the Global Financial Crisis. The package coupled tax cuts and tax subsidies with a substantial increase in infrastructure investment. As a result, Indonesia has faired relatively well in the context of the current crisis – especially in regard to employment creation. In this regard there is much to learn from the Indonesian experience. As such, the ILO is currently undertaking a number of activities to assess Indonesia’s response to the crisis and to develop tools that could enhance the government’s policy advisory capacity.
The seminar will present the findings of the country review on Indonesia entitled “Policy lessons from the global financial and economic crisis" with a view to getting feedback on the draft, in particular as regards the assessment, potential lessons for other countries as well as the challenges facing Indonesia in the medium-term. In this regard, an important component of the Country Review process for Indonesia includes simulations that leveraged the concurrent work on the Dynamic Social Accounting Matrix model – the focus of remaining two day seminar and workshop.
The seminar also aims to present the ILOs The Social Accounting Matrix Advisory Support and Monitoring Assistance (SAMASAMA) Project in more detail. In a first moment, the seminar will share the findings of the analysis carried out through DySAM on the Indonesia’s 2009 Fiscal Stimulus Package. Furthermore, the seminar will explain how to use DySAM and present its main applications, particularly with regards to employment analysis.
The ILO’s SAMASAMA Project in partnership with the Coordinating Ministry for Economic Affairs and the International Institute for Labour Studies